Portugal's NHR 2.0 Tax Regime 2025
Learn more about the new NHR 2.0 tax regime benefits and who qualifies for.
Formally known as the ‘Tax Incentive for Scientific Research and Innovation’ Portugal’s newly proposed NHR 2.0 tax regime is designed to attract and retain highly qualified professionals, innovators, entrepreneurs that meet the governments qualifying criteria starting in 2025. The government in Portugal has indicated that further updates to the regime and the qualifying professions may be extended in due course.
How does the new NHR 2.0 tax regime (2025) differ from the existing NHR tax regime that ends to new entrants in 2024?
The comparison between the existing NHR tax regime and the proposed NHR 2.0 tax scheme reveals several key differences across various income streams.
High-Value Added Activities
Under the old NHR tax regime, the High-Value Added Activities (HVAA) tax rate stands at 20%, remaining unchanged in NHR 2.0 tax regime.
Pension Income
Pension income, however, undergoes a significant adjustment, increasing from 10% in the old NHR tax regime to a range of up to 53% in NHR 2.0 tax regime.
Offshore Income Taxation
Offshore income taxation remains consistent at 35% in both regimes.
Dividends & Interest tax rates
Dividends and interest retain a tax rate of 0% across both schemes.
Other Investment Income
Notably, under the old NHR tax regime, other investment income is taxed at 28%, whereas NHR 2.0 tax regimeabolishes this tax entirely.
Capital Gains
Capital gains from real estate, financial assets, and cryptocurrencies are treated differently between the two schemes. In the old NHR tax regime, these gains are subject to a 0% tax rate, while NHR 2.0 tax regime introduces a variable tax rate ranging from 0% to 28% or up to 53%, depending on the specific circumstances.
Rental Income & Royalties
Rental income and royalties remain untaxed at 0% under both the old NHR and NHR 2.0.
Who qualifies for the new NHR 2.0 tax regime
• University teachers and scientific research
• Worker or Board of CTI or CoLabs
• Worker or Board of entity with contractual benefits to investment in Portugal
• HVAA in entities with “RFAI’ (except Doctors and Masters)
• HVAA in companies that export 50% or more of turnover
• Worker or Board in activity to be determined by AICEP or IAPMEI
• Worker in R&D in projects eligible for SIFIDE
• Worker or Board in start-ups
• Worker or self-employed in the Azores or Madeira regions
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